In a move set to reshape the animal health landscape, Covetrus to merge with Cencora is no longer speculation but strategy — a $3.5 billion enterprise value transaction that aims to fuse distribution muscle with technological reach.
The deal, announced Wednesday, will combine Portland, Maine-based Covetrus with MWI Animal Health, a unit of Cencora, creating a more expansive platform for veterinary services and animal health solutions.
Anatomy of a $3.5 Billion Transaction
Under the terms of the agreement, MWI is valued at $3.5 billion. In exchange, Cencora will receive a carefully structured package: $1.25 billion in upfront cash, $800 million in preferred equity and $1.45 billion in common equity in the combined company.
When the dust settles, Cencora will hold a 34.3% noncontrolling common equity stake in the newly merged enterprise — a significant, but not majority, position.
The companies said the newly combined business will focus on improving access to animal health products, streamlining operations for veterinary practices and fueling innovation across the sector. In an industry where timing and logistics can mean the difference between life and loss, efficiency is more than a buzzword — it is infrastructure.
